How Blockchain Technology Can Reshape the Power Industry

How Blockchain Technology Can Reshape the Power Industry

Energy CIO Insights | Thursday, May 20, 2021

The power industry uses blockchain to offer simple, auditable, and automated energy generation and consumption records.

FREMONT, CA: Over the past few years, the power sector has experienced a transition, with utilities adopting emerging technology, new generating sources, and focusing on data to make their operations more effective.

Another new technology could be revolutionary, as well. Initially built for digital currency, blockchain has moved into the energy sector, enabling the disseminating digital knowledge across networks. The concept is to enable customers, whether individuals or companies, to purchase and sell energy directly from each other. Blockchain is suitable to this as it provides a simple, auditable, and automated energy generation and consumption record. Energy production and cost savings will lead to this transformation.

Working with utilities and energy providers on market strategies, infrastructure, and innovation services, which even include blockchain, the New York-based organization has researched use cases for decentralized generation, grid control, metering, charging for electric vehicles (EV), and the Internet of Things, which requires Connected Home blockchain applications. Instead of involving a third-party party, blockchain technology lets solar power generators feed surplus energy into the local grid, sell it to other utilities, and collect credit directly from customers.

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Europe Leading the Way

Indigo has established hundreds of use cases of blockchain technology in the energy sector, keeping an ever-evolving list in its repository of energy blockchain developments. Most of these use cases are pilot projects, and there are various ongoing programs in Europe. There are also ventures in China and Japan, a $30 billion investment in a blockchain-backed smart city project is expected in China by industrial technology developers. The U.S., Australia, New Zealand, and South Africa create blockchain projects around electricity.

In November, four Japanese companies, Kansai Electric Power Co., Nihon Unisys IT service management firm, Mitsubishi UFJ Bank, and the University of Tokyo have said they are partnering to research the ability of electricity delivery blockchain technology. They would look at enabling suppliers of solar power to use the blockchain to sell excess electricity.

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